The Tariff Impact on Golf is becoming a defining challenge for the industry, as leading brands like Acushnet and Topgolf Callaway grapple with rising costs, workforce reductions, and strategic disruptions. With millions in tariff-related expenses projected for 2025, these companies are being forced to rethink sourcing, pricing, and operations—revealing how global trade policies are reshaping the financial and structural foundations of the golf industry.
Acushnet’s Strategic Response to Tariff Pressures
Acushnet Holdings Corp., parent company of Titleist and FootJoy, is navigating a turbulent economic landscape shaped by escalating tariff costs. In its latest earnings report, Acushnet projected full-year 2025 revenue between $2.52 billion and $2.54 billion, reflecting low single-digit growth across all segments. While this growth is encouraging, it’s tempered by a looming tariff burden.
Chief Financial Officer Sean Sullivan disclosed that Acushnet anticipates $30 million in incremental gross tariff costs for the year—a $5 million reduction from earlier estimates due to timing shifts and tariff-related variables. However, the fourth quarter alone is expected to absorb a $15 million tariff headwind, a substantial drag on profitability.
To counteract these pressures, Acushnet is deploying strategic mitigation efforts, including supply chain adjustments and cost management initiatives. Sullivan emphasized the company’s commitment to offsetting a “meaningful portion” of the tariff impact, though the long-term sustainability of these efforts remains uncertain.
Topgolf Callaway’s Workforce and Margin Adjustments
Topgolf Callaway Brands (MODG) is also feeling the sting of tariffs. CEO Chip Brewer reported a $12 million tariff expense in Q3 2025, with projections reaching $40 million for the whole year. Brewer noted that the phased implementation of new tariffs, combined with the FIFO (First In, First Out) inventory model, will likely intensify the financial impact in the coming quarters.
In response, Topgolf Callaway has initiated efficiency improvements, pricing adjustments, and vendor negotiations. Yet the most visible consequence has been a reduction in force of approximately 300 positions. Brewer clarified that no further layoffs are currently planned, but stressed the need for vigilant cost management and margin protection going forward.
This workforce reduction highlights a broader trend: tariffs are not just affecting balance sheets—they’re reshaping the employment landscape within golf’s corporate ecosystem.
Industry-Wide Implications and Consumer Fallout
The tariff impact on golf extends beyond corporate boardrooms. As manufacturers absorb higher import costs, consumers may face price increases on golf balls, shoes, clubs, and apparel. Brands are forced to balance profitability with market competitiveness, often passing some of the burden onto end users.
Moreover, tariffs complicate global sourcing strategies. Companies reliant on overseas manufacturing must reevaluate supplier relationships, potentially shifting production to tariff-exempt regions or investing in domestic facilities—moves that require time, capital, and logistical overhaul.
The ripple effects also touch golf retailers and pro shops, which may struggle to maintain inventory levels or offer competitive pricing. Smaller businesses, in particular, lack the scale to negotiate favorable terms or absorb cost increases, making them vulnerable in a tariff-heavy environment.
Looking Ahead: Strategic Adaptation or Structural Change?
Both Acushnet and Topgolf Callaway are demonstrating resilience through proactive measures, but the long-term outlook hinges on broader trade policy shifts. If current tariff rates persist—or escalate—golf companies may need to consider structural changes, such as vertical integration, reshoring production, or diversifying product lines to reduce exposure.
In the meantime, the industry’s response will likely involve a mix of cost-cutting, innovation, and strategic partnerships. Brands that can adapt quickly and efficiently may weather the storm, while others risk falling behind in a rapidly evolving global market.
The Bottom Line: Tariffs Are Undermining Golf’s Financial and Operational Stability
The tariff impact on golf is real, measurable, and multifaceted. From Acushnet’s $30 million tariff headwind to Topgolf Callaway’s $40 million forecast and workforce reductions, the industry is being reshaped by trade dynamics. As companies recalibrate their strategies, the effects will continue to ripple across supply chains, retail environments, and consumer experiences—making tariffs a central issue in golf’s economic narrative.
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